How to research used cars online

Traditionally, potential buyers who buy used cars are forced to drive from one dealer to another to find the cars they want and can afford. Once there, customers have no definitive way to know if they have gained value from their dollars or if the dealer has deceived them. Because the automotive industry uses all high-pressure sales strategies, you can easily get bogged down by lack of knowledge and bargaining power.

Many online websites provide the public with insider information about the automotive industry. Well-known websites include edmunds.com, carsdirect.com and autotrader.com. Visiting these sites requires a certain amount of work, especially used cars, because each car has unique standards in terms of equipment, condition, mileage, engine and model year.

These guides can easily provide you with a discount (wholesale price) and market value (retail price) for used cars so that you can confidently provide accurate quotes to your dealer. Often, online guides provide much more photos and information than in classified ads.

Conduct extensive research, avoid impulsive decisions, and compare information collected online with local dealer website information and local used car publications to determine retail prices.

Once you have found a vehicle that fits your needs and budget, you should follow these guidelines. After testing the vehicle, it should be thoroughly inspected by a mechanic independent of the dealer and checked for vehicle recalls or consumer issues. The vehicle identification number (VIN) should be obtained and checked through an online service such as “carfax.com” to provide a description of previous ownership (private, lease, recycling, etc.), specifications, issues, and odometer readings. Answer all important questions about used cars before considering the offer to the seller.

When the required vehicle has been located, online pricing, historical research and mechanical inspection, the dealer should be quoted. In general, the dealer's goal is to buy used cars at a price lower than the wholesale price of $2,000 (lower blue book), so the new car owners in the future can expect to bargain at least at the final retail price. Simply provide the sales manager with a price of 5% of the wholesale price and remain relatively stable. Don't deal with sales people.

If the car is sold privately, it is customary to offer the seller a 15% price at the wholesale price and negotiate on this. Keep in mind that private sales generally do not involve the refurbishment of the owner, and the car is sold as is; larger dealers may offer limited warranty or spend some money to repair used cars and absorb costs in total sales.

Smaller dealers may not offer any upgrades and must increase prices with larger competitors. The quality and reliability of the information collected online, combined with these guidelines, will provide you with the knowledge and ability to successfully negotiate in any used car negotiations.